To apply for a personal loan, borrowers should visit a bank or credit union and fill out an application with a loan officer. At a bank or credit union, borrowers can apply for signature loans, collateral-backed loans or even credit cards. Some lending institutions also offer applications online, notes Bankrate.
Before arriving at the bank to apply for a personal loan, borrowers should spend some time reviewing the loan packages offered by banks. Borrowers should educate themselves on the different types of personal loans, as well as fees, interest rates and repayment terms, states Forbes.
To qualify for a personal loan, borrowers need to have a good credit history, and they should also consider how the loans fit with their financial goals, according to Capital One. Consolidation loans used to pay off debts are one of the most common types of personal loans. Other uses for personal loans include paying for education, making home improvements and paying for medical bills.
A personal loan is any loan used for personal rather than business or commercial purposes, but the phrase is often used interchangeably with signature loan, according to Investopedia. A signature loan is a personal loan secured by the borrower's signature rather than collateral..